It could be factoring
Posted By: see inside on 2005-11-17
In Reply to: here's a new one! - texan
Factoring means that the MTSO "sells" the invoices to a factoring company. The MTSO pays their expenses with the money received from the sale, and the factoring company collects money when the clients pay the MTSO's invoices. It's used when companies don't want to wait 30 or 60 days for their clients to pay. It's legit and not uncommon.
I don't know if ADP offers factoring though, so it could mean something different.
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Now that MTSO needs to look into factoring.
I'm not sure of all the specifics, but I have heard about factoring companies who take care of invoicing the clients while providing the MTSO with a way to pay their MTs on time. And apparently the rates for such a service are very reasonable.
Maybe someone needs to put a bug in your company's ear about looking into that? That is so totally inexcusable, what you're going through! The MT shouldn't have to wait one minute longer than the promised pay date, regardless of when the MTSO's clients pay them.
Line of credit or FACTORING
I found your post very interesting and appreciate you took some time to respond. I am interested in finding out about the term "factoring" and the company you referred to as "PRN." Could you give some more info on this?
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